tv Whatd You Miss Bloomberg December 7, 2017 3:30pm-5:00pm EST
government from shutting down. both held press conferences today. >> the defenders of the status quo is either old, broken system slipping away. we believe it is time for hard-working people to get a break. people living paycheck to paycheck get a relief. to pillagean assault the middle class. tax breaks to wealthy people and corporate america? of $2 trillion to corporate america? mark: as you saw, right closed -- ryan and pelosi joining senate colleagues. in the west bank today, palestinians protested president trump decision to declare that juicer is limited -- jerusalem is israel's capital. thousands of palestinians and israelis died in the previous
two of writing -- uprisings. before being detailed by two police officers. in a video statement, police said the suspect was a 29-year-old man with a temporary residency permit. police did not give the suspects nationality. his visit tos on greece, the first visit by a turkish head of state in 65 years. ties between the fellow nato members have been strained by competing claims of violence, as well as how to handle recipes -- refugees.
i'm mark crumpton, this is bloomberg. ♪ >> live from bloomberg's world headquarters in new york, i'm julia. >> we are 30 minutes from the close of trading here in the u.s. a losing streak ahead of tomorrow's jobs report. >> what do you make of it? >> averting a government shutdown. the president met with leaders from both sides of the aisle. firefighters have little luck in containing wildfires across southern california. flames have displaced more than bitcoineople in skyrocketing past $16,000.
as u.s. exchanges planned to get into the action, -- >> one minute closer to midnight. the federal government runs out of money tomorrow night and a shutdown looms over capitol hill. president trump said don't leaders from both parties. can we expect another last-minute deal with democrats? it is not look likely this time of round -- this time around. they are set to vote tonight. what are we expecting? we think both will pass a bill to extend government spending all the way to december 22, really adding a couple of weeks. they are trying to buy themselves time to work out some of the leftovers from the tax
reform fight last week. senator susan collins wanted a couple of compromises, the main one being money for obamacare subsidies and they will try to put that together in a package for december 22. is they havegist some tough decisions right now. they will kick that can, but there is real tension between some of the freedom caucus people and freedom what is needed to pass tax reform which is not a done deal yet. ball you may recall, the is in the court with the house. you have a house version and a senate version. state and local taxes, some of those things. now, the two chambers have to
come together. you might think that would be easy. they are all republicans. contrary.e the con -- wants arump says he deal done by christmas. they're optimistic they could patch of the differences. >> i want to go to the other side of the aisle because of what happened with senator al franken who said he will resign over sexual harassment allegations. yesterday was kind of the turning point. what happens next? >> al franken said he is resigning, but not immediately. he said in the coming weeks. all will happen next is the governor of minnesota will get to choose his successor when franken does leave. a lot of people are talking about the lieutenant governor as
a possible replacement. alabama.aw this in luther strange, did not work out so well. in minnesota, they seem to be doing it the other way. up somethe party put -- put up some -. >> it is connected, but not connected. obviously the difference we have seen is both of these gentlemen being thrown around. when we get toct that senate seat? now, roy moore -- doug jones the democrat was creeping up a little bit. bitight just be a little
too much time that elapsed since those stories came out -- dating a 14-year-old another things. you could have a situation where the voters of alabama saying you don't tell us who to vote for. i think it still could go either way. if i had to bet a dollar, i form -- four roy moore for roy moore to win. about the heard infrastructure plan for months and nothing has emerged. our people in washington expecting much? >> that is a great scoop by a reporter who covers in for
chartres for us. what the white house is saying is look for their big infrastructure plan in january were roads, schools and bridges with akinds of things price tag of about $1 trillion. right now, you have a theoretical plan to do a lot of projects around the country, but if you don't have a dollars behind it, it is not going anywhere. they -- ssages for the roundup of washington events. coming up, we go over to california where wildfires are raging through the area. we look at the economic tolls next. this is bloomberg. ♪
>> wildfires across southern california have shut down a major commuter artery in los angeles and threatening some of the states more lucrative crops. it has wiped out nearly $3 billion of market value. here now to talk about the palmeri.toll, chris size.s a scope of the we read about how there's evacuation in the roads have been shut down. we need some more details on how
big of a disaster this is. i would say it is not as bad as it was recently. northern california had a huge area destroyed. it is deathly bad though. we are seeing multiple wildfires and that is unusual. they are under investigation. we have seen over 150 structures destroyed and a couple dozen closer to l.a. we've had several highways closed and reopened, but very dramatic photos of flames licking the freeways. a lot of people seem to be staying home rather than going to the office. traffic seems lighter in some places. canceled,some event offices closed and kids not going to school. >> what about the business
aspects. it is difficult for businesses to have workers get to work. another, crops. we have avocados and citrus growth. can you talk about in terms of crop damage? >> the biggest fire is the one up inventory of, which is about 60 miles northwest of los angeles. it is in an area that is between and very close to the agricultural communities. so yes, there is possible impact . we are hearing avocado prices citrus crops destroyed. at this point, it is not widespread.
filming is., canceled and mountain areas -- in mountain areas and the utilities.ect is on little more that a for people who have not been following theories of the fire's origin. what do we know about that? >> there seems to be some evidence that power lines work in shipping to this. it is one of the reasons we are seeing so many fires. are really strong, in some cases 50 miles per hour. record low humidity and so any kind of smart can contribute. nothing has been identified here. possibility that utilities are blamed.
>> we have a live shot in california, right around the los angeles area. he talked about the winds and how they are really strong. the santa ana winds come every year don't they? talk about what is different this time around. >> it was a very dry summer and so a lot of this is happening in grassy areas and stuff that is burning and the winds are just and itng it very rapidly can travel for miles. that may be why we are seeing fires pop up in so many different places. another factor which has been getting a lot of attention is navigational apps are steering you to places where there are no cars, but they may dangerous for beenvery reason so wze has working witheen
the fire departments to try to make it work better. it may be early to talk about quantification, but we are talking two months after the california wildfire one country fires, $9.5 billion. there's huge tax implications going on to try to stave out the deductions for the likes of wildfires and earthquakes. for areasbe critical like this in california. >> that is something that california governor jerry brown has been putting on the table recently. natural disasters seem to be accelerating.
>> that is what happens when you push through the tax overhaul so quickly. >> thank you so much. >> time now for the bloomberg business flash. passes $15,000. davies tellshoward bloomberg -- >> i think all authorities can do is put out the sign from dante's inferno. i think that is probably what is needed and that is what needs to be done by the fed, ecb and bank of england. it is hard to see rationale for that move.
>> qualcomm ceo this missed dismissed broadcom's attempted takeover bid. if the deal closes, it would be the largest in tech history. anheuser busch has added its --e to teslas semi trucks electric semi trucks. it's goal is to reduce operational costs by 30% by 2025. 5% -- spiked more than the switzerland-based investment management is calling for an investigation into a recent
surge against the stock. they drop more than half the value this year. -- they dropped more than half their body this year. >> that is her bloomberg business flash. -- that is your bloomberg business flash. >> and miguel doolittle has the lowdown for us. -- abigail doolittle has a lot on for us. to vie foris going those tv assets and they're willing to take on the some studios, even if that could turn out not to be the greatest deal for them. and then jeffries came out saying that disney is the much better bitter. this deal could be deluded for comcast. you -- do each of
37% over a 37% over a short ti. >> i would've said 10%. >> there so much talk about what .appened -- will it happen investors are taking this very seriously. . india's star is up for sale and it could be for as much as $50 billion to my which is about half the value. it seems investors think it is going to happen or something is going to happen. we were discussing this yesterday and the fact there has been so many leaks surrounding this, it is hard to take
seriously. >> on the fox park, perhaps they are willing to do a deal. we think about this from a broader perspective, here we have rupert murdoch, who has been the star of this machine for long time and finally .erhaps, willing to sell -- eems to be murdoch family seems to be playing it well. coming up, bitcoin started this year around $1000 and just past $16,000. passed this is bloomberg. ♪
buybacks by s&p 500 companies are connected to be down for the first time in a non-recession year. company spending and investing in r&d are being rewarded. outperforming are the s&p 500 by the index. both are up, but there is quite a performance gap. the question becomes why are buybacks on pause right now? it might have to do with the record buybacks we are seeing. also, a lot of uncertainty with the tax bill under consideration. the house and senate need to .econcile their version companies don't know what to do in her sitting on cash right now as they figure out what to do next. >> i want a tax adjustment on the white line as well. bitcoin crazy,
but the south koreans especially. i'm getting you a sense -- giving you a sense of the daily trading volume. we have converted it to dollars to give you an idea. so many koreans have embraced bitcoin that the prime minister warned that it might corrupt their nations youth -- the nations youth. what i want to show you is that 21% of ther period, worlds bitcoin trading involved the korean won. of the give you a sense gdp of this country, it is less than 2%. % of it bitcoin. >> it was about $1000 at the
beginning of the year and past -- passedsterday $14,000 yesterday. this is a measure of hyperinflation in venezuela. beginning see, at the echehe year a cafe con l nonbreaking 14,000 -- now 14,000. >> people, in order to combat are -- n great article in bloomberg. >> around of applause. >> there's a ton of demand for
the s&p snapping a losing streak. >> if you're turning in live on twitter, we want to welcome you everye closing bell weekday from 4:00 to 5:00 p.m. the s&p 500 ending to a four-day losing streak. the dow adding 71 points. almost two stocks gained for everyone that fell --every one that felt. fairlysupport encouraging. let's hone in on general electric. making news is it is
12,000 job cuts. this company really needs to get back on track after several quarters of not impressing investors. dollar general also getting a boost, up almost 3%. a makeover there is starting to gain traction. customers are streaming into the chain. shopper traffic actually grew in lululemonquarter and up. it expects earnings as much as $2.48 per share. let's take a look at the government bond market starting with the two and 10 year. some steepening of the yield curve. .0 year yields up to 2%
obviously, tomorrow's job report going to be key. we will watch for wages. also interesting, we talked about earlier, the scope that the white house wants to unveil a stimulus package for infrastructure in january, may be contributing to upper pressure on the rates. a break in the flattening story. >> got to work out to finance it first. the dow rising for the fourth straight day. here.show you sterling over the last three months, sterling a bit lower. we did see a high today. that they are closer to
a brexit deal. supposedly, we have a deadline on saturday morning over the irish border issue and then they can move on to trade talks. a quick look at emerging markets. higher see the dollar .ersus the dollar rand just to follow on, craziness and south korea. , an shows you corn bank online platform for buying and selling bitcoin. the blue line is the rally we have seen in bitcoin and the white line is its price on corn base. -- coin base. coin base through in
their market. >> on the commodities, a little bit of a quiet day, but crude gaining a little over 1% and the precious metal selling off today. we had a little bit of a selling in treasury. gold down 1.3% and silver basically up by the same amount. those are today's market measures. >> for more at today's market action and a look at why investors should take their portfolios outside of the u.s., we want to bring in the global chief investment strategist at private citibank. the second wind. one of the characteristics? -- explain the second win what are the characteristics -- >> 2010 was easy.
obviously when you had global equities rally some 20% or so, you could think that we discounted that growth. for thehe key messages 2018 report is that we have not broken down the correlation between future efforts in share prices. strong, butit is the returns in various markets -- you have brazil up. nine years for the united states. returns for the resellers for the last five years have been one quarter. ideas is tour key go abroad for 2018. we heard a lot of people say this year that was a popular idea. why does that still work? >> we are focused on fiscal policy. it is not surprise me to see the
u.s. dollar strengthening. behindctually lagging november through january. the u.s. is going to only have one tax cut as far as the eye can see. what we are seeing outside the year, noates next promises of tax cuts or organic growth. it is not going to be as disruptive. the tax cuts are 30% as large on a net basis as they are on a gross basis. there is no border tax adjustment. i think globally, we want to have overweight outside of the united eight inequities and fixed income looks higher and better. we are seeing central banks raining endless to various degrees. you have seen a burden placed on
the public sector shift to the private sector and consumers in particular have been important to the recovery. >> these are the two meaningful things -- acceleration and global growth. probably the world economy $6 trillion larger. both of these things are relevant. it means higher volatility and a lack of momentum, but when you qenk about valuations, assets in europe, six income, lower yields much more impact. >> do you worry about a central bank error and if so, where would it be? where with that potential for friction be? >> i don't think about it as much with u.s. 10 year yields. people were upset yesterday because the yield curve was flattening. today, it is steepening.
i couldning market -- look out one year and say when the yield curve has been converted for a while. i don't think it is going to come from a big policy made in the united states. it is not to the point where gradual tightening will stop it out. mp it out. thesekeep asking questions and at some point i guess there will be a correction . perhaps we should see that coming. >> i think we have been fortunate to see there's a rotations -- there's these rotations in the marketplace. fundamentally the the story is nothing like 1999. you actually had profits. we think it is more contained to
rotation in the marketplace, but at record volatility levels you have to expect more drawdown. >> what are you concerned about? nothing really giving much anxiety right now. is there something out there that you what i do i as the big risk factor? >> i would say that global trade to the sidesative of the world economy and you think about what could go wrong there? i think risks of trade wars are down from the year ago, but they're still material and the impact of a trade war would be larger for the world economy. i think about that much less , which arety risks not that relevant. >> are you worried about a collapse? >> i don't think there is a clear collapse. if we were out of nafta, u.s. tariffs in mexico would go up 7.5%.
the sense really have of a big problem unless there is have anion and you embargo on goods and services on the americans. unknownentioned the unknowns. what about bitcoin and what does it mean for traditional asset? >> to think there is a direct link, i would not be sure to go there. .erhaps gold it is in the eye of the the holder. will someone anymore for this in the future? you see the pool of money go up, it excites interest in -- and it gets more people into it and it goes up more. i don't understand why you would want a new promising technology. blocked chain could be -- a
agenda, the gop's tax bill and averting a government shutdown at midnight friday. a partial government shutdown could occur, unless congress passes a two-week spending bill that republicans introduce over the weekend. democrats have not said how they will vote, but this is a said itd said there -- would depend on budget talks making progress. senator al franken announce he will resign in the coming weeks. one of his leaders in the democratic wing, including several female senators, called for him to step down in the wake of allegations on sexual misconduct. >> i'm aware there is some irony ,n the fact that i am leaving while a man who has brag on tape about his history about sexual assault sits in the oval office and a man who has repeatedly preyed on young girls campaigns
for the senate with the full support of his party. >> senator franken said it is time to listen to women come a but he still disputed some of the allegations against him. withtinians will not meet vice president mike pence because of the u.s. recognition of jerusalem as its capital. mr. prince is expected to visit israel and the west bank city of bethlehem later this month. monopod, president mock said he is railing -- rallying international opposition against president trump. in a meeting, he said quote fortunately, there was a positive response from all the countries around the world from europe to africa that won't
support the u.s. 24 hours a day, powered by more than 2700 journalists and analysts in over one at the 20 countries. this is bloomberg. >> on many strategists are --dicting 2018 will overheating economy, to the democrats pushing to take control of congress, it could turn out to be the most consequential year of the decade. turning us now, numbers view columnist -- bloomberg view columnist -- joining us now, columnist fromw atlanta. talk about what we should be watching. >> i think part of the story for tech this decade is futuristic
ideas. tesla, with all the promises they have made, as well as uber. in both cases, you have questions about ethics and how the companies are governed. tesla has to prove what the model three they can deliver. get has to show they can closer to profitability. >> obviously, another one of with thegs has to do labor market. we get the jobs report tomorrow and you say this will be the tightest later market we have seen -- labor market we have seen in years. thatare the ramifications make 2018 different than 2017? >> if the markets are making a big mistake right now and overestimating how profitable they will be in 2018 and you can see that with the tax adultery
for instance, the retail industry gets the tax windfall and they might have to give it away in the form of lower prices to maintain market share so it might not be that big of a story for the corporate sector. at the same time, if we have a great economy, if workers are getting back to normal's -- in terms of wages, we might get this growth and see profits don't grow. >> the question then is how the federal reserve response. it prices increase -- you have .ew members of the fed did you hear anything from jerome powell that would indicate he has a plan? there is a blueprint to deal with an overheated economy? we have seen so much flattening of the yield curve. i don't think we have seen the
feds catch up to that in terms of its planning -- of expanding -- of explaining. >> we have talked endlessly about the tax overhaul and how necessary it is for the gop and president trump to get this done before the midterms next year. where you look at the special elections, the result in virginia, nevermind the president's own approval ratings. polling, look at the this tax bill beats republicans in 2018 what obamacare was in 2010. togetherwrap it all
asause one of the themes that mosts note is -- ift notes this year all these things come together and there are big changes to the fed, where these see the biggest mispricing's in the market that are looking for these changes at all? >> that is a good question. i would say really technology being able to solve our problems and you can see that. technology companies, the enthusiasm around startups. obviously, cryptocurrencies and the mania surrounding them. if all the technology is credited as the institutions driving forward, what will take its place? i think will be activism, local
government. think bitcoin goes pop in 2018? >> who knows how high it goes? prices go upsee 20% in a matter of a, that usually means we really have a few months rather than years. >> coming up, we spoke to a former u.s. ambassador on his of president trump recognizing jerusalem as israel's capital. this is bloomberg. ♪
after president declared jerusalem the israeli capital. joins u.s. ambassador bloomberg markets this morning and discusses the state of the peace process in light of this decision. >> i think it's even more jeopardized and it was before, where it was hard to believe that the negotiators were out there working for president trump were making any real progress. so while the middle east is getting worse while we feel it can't, i don't think that is an argument to say that our becauseions -- in part, [inaudible] and the rest of the arab world because -- even though this is damaging and it will take time. we will have to see where it will go, but because of our
israel,elationship with no one else has the potential for influence. it is a real controversy. mahmoud abbas came out and said the u.s. has played itself out again. does the u.s. still want in? is there a jared kushner plan? >> i wish i could say i was hopeful and two weeks ago when the administration said they would not move on the jerusalem -capital thing, out of respect for jared kushner's work. that has now turned around in a way that is negative, particularly in the near term .or the u.s. influence
explain the timing of the decision? is there a possible link between this and the molar investigation mueller investigation? >> let's be clear. this is probably a wag the dog moment for president trump and prime minister netanyahu. we will have to wait to see were each of those come out, but the president within the last two weeks has denied the statements he made about the hollywood restated the birther argument on barack obama and seems to be engaged. when there is bad news, do
everything you can on a daily basis to stay on the headlines stashed in the headlines on whatever subject it is and hopefully try to take the bad ones and turn them in with the new episode of alternative truth if there is nothing favorable. it might not be presidential, but it is certainly trump. >> that was the former u.s. ambassador to israel speaking to bloomberg markets earlier today. coming up next, bitcoin futures markets goes live on sunday. we will talk about what investors need to keep their eyes on. this is bloomberg. ♪
mark: i am mark crumpton with first word news. a shooting in new mexico left two suspects -- two people and the suspect dead. police did not release details about the shooter but confirmed the others were killed and attended the high school. no other injuries were reported. a white officer sentenced to 20 years in prison for fatally shooting a motorist in the back. a bystander recorded the shooting on a cell phone and it was shared around the world. the struggle between the officer and michael slater showed scar running away.
the officer fired eight times. scott was hit in the back five times. wildfires continue to burn across southern california forcing new evacuations and shutting down major roadways. conditions could worsen. the buyer of a $450 million da vinci painting is saudi arabia's crown prince. it was made through a proxy according to the wall street journal. salvador monday would indisplayed at the louvre abu dhabi. i'm mark crumpton. this is bloomberg.
scarlett: we saw gains in the s&p 500, dow and nasdaq ending a four-day losing streak. pretty broad even though the actual move was modest. joe: we had a few mild days. >> and the jobs report. bitcoin may be poised to go legit. are they ready for prime time? the digital currency had one of its wildest sessions ever raising russians of volatility just days ahead of the futures debut. goldman sachs plans on clearing bitcoin futures. they will act within an agency capacity. now. get insight
great to have you on. using cryptocurrencies should be considered legitimate. why? >> from an institutional interests, we are getting volatility of the currency. there is potential for new financial products in a space have some institutions struggled to find that. julia: volatility suggests that. say it is something they don't really understand. >> when there is volatility there is benefit to trade on that. they can provide that to clients. joe: you have the word block chain in your title. it seems to me for the last several years if you talk to someone in business and ask
about this stuff, block chain is an important technology, but no one has found how to use it. you must talk to corporate clients all of the time. 6-9t is funny because months ago i started getting calls, do you understand this bitcoin thing? we really see -- we don't see that as differentiated. it is bitcoin as the app for block chain technology. bitcoin is a public block chain. you're going to see a lot of things coming out with that. it is going to take time for it to be adopted. how informed her people on block chain? if they don't really understand the mechanism, they are liable to act impulsively.
>> it is one of the better there are still obstacles for your average retail investor. >> what about corporate investors? >> there is a lack of real qualified custodians who can provide these services. this is one of the things we are getting calls about. to provide itant to clients that are not infrastructure pieces. >> what do you tell them? we have talked to crypto hedge fund managers. it sounds like they still have to keep private keys in the safe. what is the existing suite of options? >> a number coming out of the custodian space, those that provide wallets to consumers. some of those are starting to move. i don't necessarily have all of
the services. joe: one step to move this forward is the launch of futures. today we saw the exchanges buckle under pressure. the price discrepancy, julie had a great chart between coin based in the other ones with massive -- does the existing infrastructure, is it ready for institutional money? >> that is part of it. when you are looking to enter this space, do you want your faith into some of these or -- it is different from the institutional cost of audience you are looking at. >> the white light is the price on corn-based. the blue line is our index. having toabout reference an index and yet you have discrepancies like that.
things like you don't see in the copper market. >> there are a number of criticisms of bitcoin that don't necessarily -- that misinterpret what it is and isn't. one thing that is a criticism it is it is not liquid when you compare it to copper and gold. you can have it wales that can move the market easily. that is something that they need to keep an eye on. that dilute the wales to a certain percent? 4% ownership of 95% of the bitcoins out there. >> that is why when you bring in futures people will be able to play the market in a different way. it is going to be interesting to see what happens. >> they are concerned that the
exchanges, that are going to be making these futures available haven't done their due diligence, they haven't got to understand what requirements there are, what risk limits are needed as far as trading and they are concerned they don't have the exchanges to protect against market been that relation. are all of those things fair arguments? >> i would be able to comment on the letter but we do spend a lot of time talking about some of the systemic risks because it does look different. >> do you believe these exchanges have the tools available to prevent market manipulation? >> it is a good question. talking with some of the exchanges, i would have to think about what specific manipulation you were talking. insider trading is tough. people arguing with each other
on twitter. if you talk about things like front running inside of trading, that is different. we are seeing the exchanges buckle in the lead up to the futures. what happens on monday? i have never provided or taken price predictions. i'm probably not going to start that. scarlet: the ordeal in us. how about that? >> we will see. that thishe bull case brings an institution starting to trade, that some of this is being priced in. a lot of this trades on sentiment. julia: highly volatile. >> this is the year people realize it is not going to be used for buying coffee, for micro-payments. the only real use besides the store value is in transactions
the government and banks don't want you to transact in hence the reason to use something based in cryptography. companies are doing this are they going to be create liquidity for online black market? >> there are two perspectives. if you look in countries such as venezuela, you reach what is something this morning which looks like the bitcoin price index. if you are looking in those countries there is a value in bitcoin as a hedge against geopolitical risk. on the other hand, as new technologies are coming in, second layer technologies, we may see payments in those things evolve into an internet of value. julia: what is the most popular question clients come to you and
ask? >> what is this thing? they know what it is. they have heard about it. but why is now everyone buying into it? we have a number of good conversations about it. >> i bought it but why did i do this? >> people need to be educated. what is bitcoin. probably the most popular search. thank you. up, the lineal's want to follow in their parents footsteps and buy homes in the suburbs. what is holding them back? this is bloomberg. ♪
scarlet: it might surprise you but millennials do want to own homes. a combination of slowing wage growth and student debt is not making in -- making it easy for them. joining us now from washington, the desire is there, the means might be a challenge. how is this desire different? how is it going to play out differently? >> it is going to depend on what the economy does. what the labor market looks for these people as they get older. one thing that is hard to see, you have so many young people with huge amounts of student debt they are not going to pay off any time soon. as the labor market improves if they see rising wages, they will be better positioned. that is anyone's guess. wages have started to rise.
, well it stilln be going on? if we can avoid a recession we may see improvement that this -- but that is a question. it as some people say, is simple as the labor market not being as good as people think? >> that is the basic story. the labor market is getting better. i have been people saying these are bad times. workers have not been getting their share. but the last two or three years you are seeing wage growth at the bottom of the income ladder. even young people with college degrees, advanced degrees, they have seen no wage grains since tooth -- wage gains since 2001. it doesn't make up for declining wages. julia: the focus on the supply
side, if we look at home builder activity in terms of price points that would be accessible, they are not producing enough of those. >> it has been striking. the plunge and house prices in the collapse, the last few years house prices has been rising. they are above historic average. if you look at adjusting for inflation, house prices moved on -- rise ofrase inflation. then we have the bubble. prices have risen. they are 10-15% above their long-term trends which makes it harder for those first-time buyers. scarlet: i'm looking at a chart. it looks like the percentage of home ownership rate on a
quarterly basis. we are coming back from the lows . certainly nowhere near the highs 69% in 2004. are we doomed to stick around this? like germany, a nation of renters. >> i think we might see permanently lower home ownership rates. we do have a different economy, particularly that people don't have the same job security. they can't count on getting a job and staying with it until retirement. people have to move across the country. in that context it doesn't make sense to be a homeowner. i don't think it is a bad thing to have smaller home ownership. this is how middle people that middle income people save for retirement. -- that is arned
concern. joe: the tax bill, what will it do? >> i think it will lead to a lot of gaming. i don't think the one have an impact one way or the other. richest money to the people in the country. it doesn't make a lot of sense to me. julia: thank you. thank you for that. there weking news now, go. the house has voted to fund the government through december 22. we were expecting a can kick. it is ongoing. the expectation is they will kick the can. julia: up next, hitting another
breaking news i mentioned earlier, the u.s. house is able to pass the hill to fund the government through december 22. the deadline to vote coming in at 235 to 193. paul ryan quelling that rebellion from the conservatives who wanted to push it out another week. next?kend move on to what -- we can move on to what is
next. trillion dollars according to figures from the federal reserve . it was driven by rising property value. , i willus to discuss handed over to you. >> you have been digging through the report for us. this is looking at cross sectors. householdt with your nonfinancial corporate debt. so, one thing we are always looking at, how is debt to gdp looking? the white line shows household to gdp. this, that was obviously the story. it's another 15 year low according to data. households are not really real
leverage and at this point. there is a lot of capacity and not a lot of concern. business fact, you can see that is quite high. it is high enough that some people are starting to talk about fast. these are the two metrics that likes to look at to determine whether we might have financial stability ahead. it is a next picture. joe: households undelivered. -- under deliver. what is it we are supposed to see here? interesting if you look had incorporate debt, we the 1990's -- >> here is the chart. >> exactly. corporate investment, capitalist expenditures.
noncorporate shows capitalist expenditures. that is small businesses. even though investment in is still america depressed, investment and small businesses is doing quite well. >> so is there any explanation behind that? >> we are starting to hear reports from small businesses like restaurants facing rising labor costs, they are starting to substitute more technology to cope with that. that could be what is going on. savings balance. what is this chart? >> we like to look at the different sector balances.
they need to balance out to zero because everyone else's spending is someone else's saving. shows savinge here of u.s. households. thepurple line shows foreign sector. the blue line, private businesses. isically what we see here prior to the 1999 or 2001 recession we had a dip in private savings. joe: everyone is saving. >> exactly. it shows us we don't have a lot of vulnerability. kind of optimistic with the sustainability of this economy. thank you for joining us. coming up, what you need to know to guerra for tomorrow's trading -- trading day.
shutdown deadline. the bill passing today after house speaker paul ryan squashed a rebellion among conservatives demanding a longer stopgap bill. the short-term measure now heads to the senate. that goes through december 22. minnesota senator al franken confirmed today he will resign in the coming weeks. more than half of his democratic colleagues, including several women, demanded he step down after multiple allegations of sexual misconduct. a shooting at a new mexico high school left two students and the suspect dead today. schools were closed for the day. police have not released any details about the shooter, but confirmed the other two people killed did attend the aspect high school -- aztec high school. president trump's lined -- trump this, a proclamation on the 76th anniversary of the attack.